Supply Chain Management PDF

SUPPLY CHAIN MANAGEMENT Ts. Dr. Vikneswari Perumal  1.0 INTRODUCTION Supply chain management (SCM) is the successful management of supply chain operations to gain competitive advantages and customer satisfaction. It reflects a concerted attempt by supply chain organisations to buil...

SUPPLY CHAIN MANAGEMENT Ts. Dr. Vikneswari Perumal  1.0 INTRODUCTION Supply chain management (SCM) is the successful management of supply chain operations to gain competitive advantages and customer satisfaction. It reflects a concerted attempt by supply chain organisations to build and manage supply chains in the most reliable and possible profitable ways. SCM is the handling of a good or service’s entire manufacturing flow, starting from the raw components all the way to providing the finished product to the customer. A business establishes a network of suppliers that transfer the commodity from raw material suppliers to those organizations that directly communicate with customers. Back to Agenda The complete supply chain network of the company (1st tiers suppliers and distributors) The complete supply chain network of the company (2nd tiers suppliers distributors)  1. Marketing Activities of 2. Sales Pharmaceutical 3. Product design 4. Finance Supply Chain 5. Information technology 6. Logistic 7. Manufacturing  Flow in Supply Chain Management Physical Flow Physical flow is the most seeable part of SCM, which involve movement and transfer of goods from one place to another place Information flow Information flow involves the coordination of daily information about transfer of goods among various members of supply chain. Major Challenges in 1. To maintain the quality Pharmaceutical of drugs 2. Delivery on time Supply Chain 3. Network of supplier 4. Mode of transportation  Benefits of SCM Supply chain management in the pharmaceutical industry can renovate the organization to make better use of assets and resources, to engender profits, to boost shareholder value, and to optimistically respond to customer demand. Other benefits of SCM a) Quicker customer response and fulfilment rates b) Shorter lead time c) Greater productivity and lower costs d) Reduced inventory supply throughout the chain e) Improved forecasting precision f) Fewer suppliers and shorter planning cycles  2.0 Basic Elements of SCM Operations Integration Purchasing Distribution Leads to more efficient fulfillment to eliminate errors. processes. to facilitate the integration in Plays a major role in acquiring It manages the transport, Getting powerful insights and each division across suppliers, co- raw materials, components, delivery, and return of goods by real-time data can be useful in manufacturers and third-party deeply getting powerful insights creating the path of sustained logistics providers. and services. improvement in the entire value into the operations. to provide complete transparency It determines the necessary chain. to improve service capabilities to better forecast, plan and goods that need to be and customer retention. Evaluating and determining the purchased within your execute the operational activities. Supply chain distribution day-to-day operations enable company. business owners to make cost- Communicating and collaborating determines the overall effective decisions. with the entire process can unlock to maintain the desired quality profitability of the company as it the true potential of supply chain of production and supply in focuses on delivering the right Anticipating the shortage of processes. With integrated the business. product to the right customer demand and supply. planning and visibility, business swiftly and securely. owners can easily plan and Demand forecasting can increase efficiencies and Can lead to better client service. monitor future opportunities. profitability by anticipating highs and lows in the stocks.. Back to Agenda  2.0 Basic Elements of SCM Agility Innovation Performance Alignment It helps in determining the Leads to optimally functioning Measurement company’s ability to quickly adapt supply chains. Getting powerful insights by Supply chain needs should be to the changes. It is imperative to plan the analyzing the metrics based on strategically connected and A strong supply chain can enable integration of SCM in the aligned to the company’s companies to combat market the procedures is the most conceptual stages of the product’s significant way to enable objective. unpredictability and volatility. design. responsiveness and innovation It is a fundamental cornerstone Flexibility is significant as it is In today’s world, businesses have as it leads to the transformation useful in staying competitive and in the organization. embraced new-age technologies of entire supply chain processes.. gaining real-time visibility into the to manage the transportation and An effective SCM ensures an Also, the extensive analysis operations. logistics industry. articulate understanding of enables the synchronization of Identifying the medium- to long- Undoubtedly, transforming the the business operations and flows in the supply chain that can term supply chain plans can supply chain through innovation also helps in identifying the lead to informed decision- predict future demand shifts to can greatly impact businesses by KPIs that should be making.. improve efficiency. resolving both the structural and established. organizational complexities. Back to Agenda  2.0 Basic Elements of SCM Technology Coordination Implementing new-age technologies like artificial intelligence, the internet Communication and exceptional coordination is a basic element to of things, and block chain is a major element of supply chain management maintaining good relationships with the business’s various stakeholders. that can add significant value to your business. Additionally, it facilitates information sharing and allows the companies to It transforms the business processes which can help to drive automation make better decisions. and deliver insights that are sustainable to the business growth. Supply chain management consists of all the activities related starting from Advanced supply chain management software uses the newest logistical product development to planning. It facilitates information sharing which is technologies that is required to unlock new opportunities and improve considered to be a building block of the success of an organization. collaboration.. Back to Agenda 3.0 Lifecycle of Pharmaceutical Product When a product enters a market, it has a life cycle that traces its journey from being new and valuable to old and obsolete. It is referred to as the product life cycle or PLC. It is management tool that evaluates a product’s journey from development to withdrawal from the market. This concept is used by management and marketing professionals to make crucial decisions such as advertising costs, pricing strategies, expansion, and redesigning. Here are some characteristics of a product life cycle. Each product has a life cycle that differs from one another The life cycle of a product starts with its introduction and continues till its decline The speed of movement between PLC stages is different for all products Back to Agenda  Authority INTRODUCTION GROWTH Starting with product ideation ✓ In this stage, and continuing until the consumers start product is introduced in the buying the product, it market. becomes popular, and 1 2 its sales increase. In this stage, brands conduct marketing and promotional ✓ In simpler words, the activities, adapt product life customer begins strategies, etc., recognising the brand. to ensure the product reaches ✓ In this stage, brands its target audience. undertake different brand retention strategies to build a loyal customer base.  Authority MATURITY DECLINE In this stage, sales slow down, ✓ While companies make indicating that the market has all efforts throughout begun to reach saturation. the different stages of the product life cycle 3 With products reaching 4 to ensure that it stays saturation, competition is alive in the market, an higher than at another eventual decline location, and profits start cannot be ruled out. getting thinner by the day. ✓ A decline’s In this stage, brands look for characteristics are a ways to innovate their product drop in sales, affected and strategies to increase revenue, changed their longevity. consumer behaviour and fluctuating demand.  Electrical Examples Vehicle Typewriter VCR 4.0 Component in Manufacturing Top Referral Sites and Distribution Chain Planning Sourcing Inventory Production and Transportation Return of Goods  Planning One of the biggest questions procurement teams need to ask is whether the organization plans to manufacture goods themselves or they will buy ready-made goods. In the event that the company manufactures finished products, the next question that ariswhere will raw materials be sourced? Will it be from local, regional, or international supplierses is? This question is also posed if the company is purchasing ready- made products and passing them to the consumer in a finished state. From where will these products be obtained? Back to Agenda  Sourcing This step is one of the most critical of the entire supply chain as it is at this stage that the biggest cost savings can be achieved. Choose the right vendor offering the ideal price and who has the capacity to deliver required volumes in a timely fashion and you’ve struck gold. Select an incompetent supplier and this will affect operations along the entire supply chain. This process will also include the need to not only find vendors but evaluate and qualify them. Back to Agenda  Inventory Having several suppliers so you can secure enough raw materials and or products so you can remain fully stocked up is extremely important. According to RetailNext, 28% of surveyed businesses suffered severe shortages and even went out-of-stock of certain key items. 56% of these enterprises had to renegotiate contracts. The ability to carefully manage inventory and ensure that manufacturing schedules are in alignment with consumer demand is as much a skill as it is an art. Back to Agenda Production and Transportation The next important component in supply chain management is production, warehouse, and transportation. This element of the supply chain takes a look at what is needed to ensure that the organization is producing the correct volume of products and that product quality meets established standards. This component also factors in where the products will be kept i.e. storage in warehouses as well as transportation from said depots to stores that will retain the products. Back to Agenda Return of Goods What do you do when a customer returns a product that’s faulty? What is the protocol to handle such an incident? These questions are answered in the final component of the supply chain ‘Return of Goods’. Because customer satisfaction is extremely important, it is imperative that there be a clearly defined protocol surrounding the returns process. The more efficient the return of faulty product processes the higher your customer satisfaction rating Back to Agenda 5.0 Medicine Flow Back to Agenda 5.0 Medicine Flow Back to Agenda  6.0 Supply Chain Risk Management ( SCRM) Supply Chain Risk Management (SCRM) is the process of identifying, assessing, and mitigating the risks of an organization’s supply chain. Implementing global supply chain risk management strategies can help an enterprise operate more efficiently, reduce costs, and enhance customer service. Back to Agenda  Risk Factor in SCRM Back to Agenda  Steps in a Supply Chain Risk Management Process 1 3 Identify Your Risks Define Your Mitigation Strategies and Response Plans Many underlying hazards in the supply chain Going over every possible scenario and listing are difficult to assess.such as global economic all of the “what ifs” may seem time- instability, unreported partner/supplier consuming, but it’s the most effective financial concerns, future weather, climate approach to guarantee everyone understands change, natural catastrophe issues, and how to respond if future risk forecasts come ,pandemics. true. So learn from the past, observe what is This form of modeling provides businesses a occurring now, and forecast what may happen head start, allowing them to pivot when a in the future. crisis develops rapidly. 2 4 Compile Risk Scores Monitoring Every business will develop its own unique risk management It is an excellent technique to gain immediate visibility plan to address its own unique risks. into which issues require the most attention. According to The Institute for Supply Management, five These risk scores can take the form of numbers, fundamental practices are likely to be included in any plan:; colors, or other graphical representations of how one Look for other providers; Discussions with key suppliers; risk relates to other risks in the supply chain, allowing Increasing supplier eligibility; Purchasing more supplies; the relevant risks to be prioritized at the right Discussions with big suppliers.  SCRM Strategies Prevention, Preparedness, Response, and Recovery (PPRR) Template Centralize Data Enhance Your Supply Chain Risk Governance Cybersecurity defense Systematically Monitor Risks  6.0 Issue in Pharmaceutical Supply Chain 1. Wrong material on receipt 2. Incorrect quality on receipt 3. Deterioration after receipt 4. Deliberate fraud (intentional contamination, counterfeiting, "cutting corners") 5. Mislabeling 6. Wrong consignment 7. Poor QC checking 8. Misunderstanding of quality requirements 9. Material deterioration during transit 10.Contamination during transit 11.Incorrect storage conditions at supplier site affecting stability 12.Multiple short term exposures beyond storage 13.limits during transit 14.Undetected contamination resulting in 15.Deterioration over time 16.Supply chain operation 17.Manufacturing 18.Retailer Back to Agenda  6.0 Documentation 1. Wholesale Records Records of Transactions (Regulation 27) Control of Drugs and Cosmetics Regulations 1984: ❑Applicable for all registered products/cosmetics. ❑Entries to be made in Records of Transactions (For Licensed/Authorised Wholesaler). ❑These records should include:- ❖ Date of sale/supply ❖Name and address of supplier/purchaser ❖Name, quantity and strength (if applicable) of products/cosmetics received/sold ❖Registration Reference of the products/cosmetics ❖Batch No ❖Invoice No./Delivery Order No. Back to Agenda  6.0 Documentation 2. Importation Records Records of Transactions (Regulation 27) Control of Drugs and Cosmetics Regulations 1984: ❖ Applicable to all registered products/cosmetics. ❖ Entries to be made in Records of Transactions (For Licensed/Authorised Importer). ❖ These records should include:- Date of Importation Name and address of supplier/purchaser Name, quantity and strength (if applicable) of products/cosmetics imported/supplied Invoice No./Bill Landing No./Airway Bill No. Date of Sale/Supply Name and address of purchaser Registration reference of the products/cosmetics Batch No. Invoice No./Delivery No Back to Agenda Thank you